Every guy trying to make his work count must have read and heard countless times that start-ups are not easy and the road to start up success is long, treacherous and scary. Ironically, while it is easier than ever before to do a start-up, building a successful business is not. One of most sensitive factor regarding a lucrative start up is the way you approach an Investor or as they are known to Entrepreneurs “Angel Investors”.
The following lists out 8 such things you must be careful about not saying when you contact an Investor.
1. “Pleased to have a meeting any time you are available”
It is not ideal to approach with a line like – “Happy to meet any time you’re available”, as it clearly indicates that you don’t have much to do and obviously are not busy making your customers happy. It is unlikely that any investor will take interest in such case.
2. “We want something between X and Y amount”
Saying things like-“We need between X and Y amount”, hints an investor that you certainly have no vision about your next milestone and what resources you’ll be needing for the purpose. This puts on the negative impact that you haven’t estimated what benefits the product so that an investment could be made on it.
3. “We are presently lifting and we will finalise a closure round within the next 90 days”
In the world of start-ups, the one element that is given the most priority is Time. There is absolutely no chance of a worthy start up to wait up for 90 days to get its deal closed. Instead of favouring your claims, these kind of statements directly indicates that there literally is no interest in it. Start-ups that are oversubscribed get their deals closed within two to three days or a maximum of a week, prior to others coming and get a chance.
4. “Let’s immediately plunge on a call”
Investors are usually well established market entities that put in their wealth and resources into Ideas they find intimidating. Obviously they are very busy people, way more than you are. If you are fortunate enough to receive an email from them, there is no wisdom in ruining it up by replying them with “Let’s jump on a quick call”. Rather use that opportunity to think and summarize something brilliant within two sentences and give it a professional outlook.
5. “I will need X-dollars to perform Y-number of transactions and yield maximum profit”
Gone are the days when investors invested in tractions. Investors now opt for definite businesses which means a substantial revenue model regardless of the number of transactions performed. So aim at coming up with profits disregarding the Y-number of transactions needed to be performed with X-dollars invested. Whatsoever must be the transactions, you must emerge out profitable.
6. “Even Amazon started this way…”
The can be only one set of investors to have invested in unique Business-model like Amazon. The possibility of you reaching them out at this course of time is pretty hard. The Amazon in it’s early days in terms of business strategy was definitely the same Amazon that you see today and this is what kept it emerging out as the best.
7. “This definitely is a onetime opportunity you cannot afford to miss”
There is no need of justifying your Investor’s decision at all. This will only make it worse and aim at the fact that the opportunity is not valued enough. History is evident that outstandingly great start up founders just did talk business and skip the repartee and witticism immediately. Allow the investor deal with it himself.
8. “This market is a X-dollars one and I plan to capture Y percent’s of it”
It is very absurd that you pitch in your idea with the indication that you’re aiming to capture a miniscule part of a larger industry. Venture investing works on the principle that for an investor it has to a successful opportunity. It implies a potential of minimum 50-100x return to make it work in harmony. Your plan of taking breadcrumbs out of the pizza is improbable to accomplish that goal for him. The only companies Investors take interest to invest in are the ones whose straightforward objective is to be the largest company in their stated horizon.